M-cap of 8 of Top-10 Most Valued Co’s is More than Rs 1.52 Lakh Cr

An Overview

The market value of eight of the top ten most valuable firms increased by Rs 1,52,355.03 crore last week, with HDFC Bank and SBI emerging as the largest gainers. The BSE benchmark Sensex gained 1,246.89 points, or 2.07%, last week.

On Thursday, the threshold surpassed 61,000 for the first time in history. For Dussehra, the markets were closed on Friday. HDFC Bank’s market capitalisation increased by Rs 46,348.47 crore to Rs 9,33,559.01 crore, putting it at the top of the gainers’ leaderboard.

Further Key Takeaways

State Bank of India’s market value increased by Rs 29,272.73 crore to Rs 4,37,752.20 crore. Reliance Industries Limited increased its valuation by Rs 18,384.38 crore to Rs 17,11,554.55 crore.

ICICI Bank’s market capitalisation increased by Rs 16,860.76 crore to Rs 5,04,249.13 crore, while HDFC’s increased by Rs 16,020.7 crore to Rs 5,07,861.84 crore. The market capitalisation of Kotak Mahindra Bank increased by Rs 15,944.02 crore to Rs 3,99,810.31 crore, while Bajaj Finance’s increased by Rs 7,526.82 crore to Rs 4,74,467.41 crore.

HUL’s market value increased by Rs 1,997.15 crore, bringing it to Rs 6,22,359.73 crore. TCS, on the other hand, saw its value plummet by Rs 1,19,849.27 crore to Rs 13,35,838.42 crore. TCS’ stock fell more than 6% on Monday after the company’s September quarter earnings fell short of market expectations. Infosys‘ market capitalisation fell by Rs 3,414.71 crore to Rs 7,27,692.41 crore.

India’s stock market is expected to join the top-five club

India’s stock market is on the verge of surpassing the United Kingdom in terms of value, putting it in the top five in the world. The possible achievement comes as the domestic stocks reach new highs thanks to record-low interest rates and a retail-investing boom.

According to a Bloomberg index, India’s market capitalisation has increased by 37% this year to $3.46 trillion, representing the aggregate worth of companies with a principal listing there. This is close in on the United Kingdom, which has witnessed a 9% increase to $3.59 trillion, albeit the total is significantly higher when secondary listings and depositary receipts are factored in.

As the two economies get closer in size, India’s stronger growth potential and a thriving technology sector, which has seen a slew of startups go public this year, give the emerging market an advantage — especially as sentiment toward Chinese stocks has deteriorated. Brexit-related concerns continue to weigh on the market in the United Kingdom.

Since its bottom in March last year, the S&P BSE Sensex — the primary index of the Indian bourse BSE Ltd. — has risen more than 130 percent, the biggest among major national benchmarks tracked by Bloomberg. Over the last five years, it has provided investors with an annualised return of about 15% in dollar terms, more than double the FTSE 100 Index’s 6%.

Frequently Asked Questions (FAQs)

What exactly is market capitalisation, and why does it matter?

Market capitalisation helps investors to assess a company’s worth based on public perception. The “larger” the company is, the higher the value. Public corporations are also divided into three categories based on their size: small-cap, mid-cap, and large-cap.

Is market capitalisation and market value the same thing?

The number of outstanding shares of a corporation multiplied by the current price of a single share equals market capitalisation. Market value is more fluid and sophisticated, with several metrics and multiples such as price-to-earnings, price-to-sales, and return-on-equity used to assess it.

What impact does a company’s market capitalisation have?

Because the market cap is simply the company’s total outstanding shares multiplied by its share price, it has no direct impact on its share price. However, because market capitalisation reflects a company’s perceived value in the eyes of investors, the share price might rise with time.